RIYADH: Bitcoin, the leading cryptocurrency internationally, traded lower on Thursday, falling by 8.42 percent to $42,874 at 1:58 p.m. Riyadh time.
Ether, the second most traded cryptocurrency, was priced at $3,353, down by 12.36 percent, according to data from Coindesk.
Bitcoin will take market share away from gold in 2022 as digital assets become more widely adopted, Goldman Sachs analyst Zach Pandl said in a research note to clients.
Citing Bitcoin’s $700 billion market capitalization, compared to around $2.6 trillion worth of gold owned as an investment, Goldman Sachs said that the cryptocurrency currently has a 20 percent share of the store of value market.
Bitcoin will most likely become a bigger proportion over time, Goldman Sachs said, in a list of 2022 predictions.
In a hypothetical scenario in which Bitcoin captures a 50 percent share of this market, its price will reach just over $100,000, the note states.
“Bitcoin may have applications beyond simply a ‘store of value’ and digital asset markets are much bigger than Bitcoin, but we think that comparing its market capitalization to gold can help put parameters on plausible outcomes for Bitcoin returns,” Pandl wrote.
‘Store of value’ usually describes assets which can maintain their worth over time without depreciating, such as precious metals or some currencies.
El Salvador’s finance minister, Alejandro Zelaya, said on Tuesday that his government will send about 20 bills to Congress concerning the country’s Bitcoin bonds.
The bills will cover financial markets and investment in securities to provide a legal foundation for issuing Bitcoin bonds, he explained, adding that the legislation will create a framework to cover corresponding market regulation and issuance of securities in crypto assets.
“This is to provide a legal structure and legal certainty to everyone who buys the Bitcoin bond,” Zelaya said.
The Salvadoran government has made it clear that half of the money raised from Bitcoin bonds will be used to build infrastructure and the rest to buy Bitcoin.
Nasdaq-listed Moneygram International announced on Wednesday that the company has completed a strategic minority investment in Coinme, a leading crypto-cash exchange in the US.
This venture gives Moneygram an approximate 4 percent ownership stake in Coinme, Bitcoin.com reported.
“At Moneygram, we continue to be bullish on the vast opportunities that exist in the ever-growing world of cryptocurrency and our ability to operate as a compliant bridge to connect digital assets to local fiat currency,” Alex Holmes, chairman and CEO of Moneygram said.
The investment by Moneygram will support Coinme’s international expansion plans and other growth initiatives.